Hero Motors shares jumped 20% to ₹98.40 on the NSE, hitting the upper circuit and trading more than 40% above the ₹84 issue price.
A block deal saw 2.4 crore shares change hands at an average of ₹117, totaling ₹281 crore, which represents roughly 5.3% of the company’s outstanding equity.
The IPO was subscribed 6.66 times overall, with retail investors buying 8.23 times and institutional buyers 1.49 times. The issue band was ₹79‑₹84, with a fresh issue of ₹600 crore and a sale of ₹400 crore.
Valuation metrics are striking: the market values Hero Motors at 92.6× forward earnings and 34.3× EV/EBITDA, implying a market cap of about ₹3,815 crore.
Proceeds from the fresh issue are earmarked as follows: ₹190 crore for repayment, prepayment and redemption of borrowings, while the remaining funds will fund capex and general corporate purposes, per the company’s filing.
Looking ahead, the company is set to report FY24 results on 30 October. Analysts expect the demand for its powertrain solutions to remain robust amid a global push for electrification.